Jeisel Kezia

22/503895/EK/24127
Akmal Tanjung, M. Hum., M.Sc., Ph.D

Summary of group 3 presentation.

Macroeconomics of the Flu

When was the last time you had the flu? The world must have seemed terribly sad and unfair, in
addition to the heat, weariness, and agony. Then everything disappeared one morning. After a
quick time of relief and gratitude, the world immediately returned to normal, and you quickly
forgot about the incident. This phenomenon is similar to the microeconomic situations in the
COVID-19 era.

Similar to when people have the flu, "Macroeconomics of the Flu" is a negative supply and
demand shock that happens at a given moment and quickly recovers. We might have a cold
today, but two days from now we might feel so well that we don't even remember having one.
This is how a temporary "health disturbance" in the economy may occur. A supply and demand
shock known as the "macroeconomic flu" temporarily reduces output before it quickly increases
and may even enable a full catch-up of the deficit.

Furthermore, there is also a pandemic of macroeconomic flu. This pandemic microeconomic flu
has a significant, worldwide, and lasting impact as opposed to the macroeconomic flu, which is
just temporary and recovers quickly. This pandemic suggests significant drawbacks to which a
policymaker must respond. This situation is what we know as a "Global Microeconomics
Shock."

The Global Microeconomics Shock was a fundamental shift in macroeconomic variables or

connections that significantly affected macroeconomic results and performance indicators
including inflation, consumption, and unemployment. Shocks frequently come out of the blue
and are assumed to be caused by situations that are outside the regular parameters of economic
activity.The scale of this pandemic will determine most of the steps that will be taken by the
government to create various policies with the aim of avoiding large-scale transmission of the
virus and limiting the spread of the COVID-19 virus. The spread of this virus is very fast and
deadly, especially for people who are elderly and have congenital diseases or comorbidities
(halodoc, 2022) .

THE IMPACT OF COVID ON THE ECONOMY

Maersk , one of the world's larges t shipping companies,has had to cancel dozens of container
ships and estimates that Chinese factories have been operating at 50-60% of capacity 0102 The
International Chamber of Shipping estimates that the virus is costing the industry $350m a week
in cost revenues.

PERSISTANCE

Persistence in economic is the ability of a stock to continue moving in the trending direction .

The disruptions that companies,individuals and governments are experiencing imply that
globalisation and integration may be at risk from such health shocks.

Firms will probably take into account the lesson they are learning that global supply chains can
be abruptly broken by a health shock.

How Government deal with the crisis

1. Closing the border and suspending trains

2. Pemulihan Ekonomi Nasional(PEN) Programs

THE POLICIES There are 2 major economic policymaker s in our country. They both would
respond to this but have different approach. In the end, it doesn’t matter whether it’s from the
fiscal or monetarys ide. The goal is always the same. Managing to build some trust from the
citizens,and prevent them from fear and panic.

MONETARY Provide liquidity for the economy to squeeze the unemployment down.

FISCAL Giving relief ( stimulus ) to those who are affected (Firms & Citizens)

CONCLUSION

Various negative impacts caused by COVID- 19, such as strict health protocols required by the
government and restrictions on contact between individuals in the context of trade and the
economy affect the performance of the economy in every country in the world. This is has a
negative impact on the economy on a macroeconomic scale, including a decline in economic
growth in every country,an increase in unemployment and inflation worldwide.

(99+) Economics of the Flu: Apa yang Bisa Dilakukan? | LinkedIn

Macroeconomics of the flu (graduateinstitute.ch)

Economic Shock Definition (investopedia.com)

Weder , Beat r ice. (2020) . Economic i n the Time of COVID- 19: Macroeconomics of the F lu, (31 -35) .
London: Cent re for Economic Pol icy Research.

Kementerian Keuangan Republik Indonesia. "Atasi Krisis Akibat COVID- 19. Pemerintah Responsif Rumus
kan Program Pemulihan Ekonomi Nasional " . fiskal.kemenkeu.go.id.https://fiskal.kemenkeu.go. id/